Why does adding a host to RHEV-M fail?

Issue

• Adding a host to RHEV-M fails during setup phase with the following error message in webadmin portal:

Host rhevh1 installation failed. Please refer to engine.log on engine and log files under /tmp on host for further details.

• Resulting /tmp/ovirt-host-deploy-<timestamp>.log file in target host shows the following traceback:

2013-07-19 14:35:11 DEBUG otopi.plugins.otopi.dialog.machine dialog.__logString:215 DIALOG:SEND       ***Q:VALUE TIME
2013-07-19 14:35:11 DEBUG otopi.plugins.otopi.dialog.machine dialog.__logString:215 DIALOG:SEND       ###
2013-07-19 14:35:11 DEBUG otopi.plugins.otopi.dialog.machine dialog.__logString:215 DIALOG:SEND       ### Please specify current time (YYYYmmddHHMMSS+0000), empty to skip:
2013-07-19 14:35:11 DEBUG otopi.plugins.otopi.dialog.machine dialog.__logString:215 DIALOG:SEND       ### Response is VALUE TIME=type:value or ABORT TIME
2013-07-19 14:35:11 DEBUG otopi.context context._executeMethod:130 method exception
Traceback (most recent call last):
  File "/tmp/ovirt-GqSMZvHYVZ/pythonlib/otopi/context.py", line 120, in _executeMethod
    method['method']()
  File "/tmp/ovirt-GqSMZvHYVZ/otopi-plugins/otopi/system/clock.py", line 111, in _set_clock
    format="YYYYmmddHHMMSS+0000"
  File "/tmp/ovirt-GqSMZvHYVZ/otopi-plugins/otopi/dialog/machine.py", line 235, in queryValue
    opcode, variable = self._readline().split(' ', 1)
  File "/tmp/ovirt-GqSMZvHYVZ/pythonlib/otopi/dialog.py", line 259, in _readline
    raise IOError(_('End of file'))
IOError: End of file

• engine.log in RHEV-M shows the following error:

2013-07-19 14:34:10,150 INFO  [org.apache.sshd.client.session.ClientSessionImpl] (NioProcessor-2) Session created...
2013-07-19 14:34:10,167 INFO  [org.apache.sshd.client.session.ClientSessionImpl] (NioProcessor-2) Server version string: SSH-2.0-OpenSSH_6.2
2013-07-19 14:34:10,169 INFO  [org.apache.sshd.client.session.ClientSessionImpl] (NioProcessor-2) Received SSH_MSG_KEXINIT
2013-07-19 14:34:10,179 INFO  [org.apache.sshd.client.kex.DHG1] (NioProcessor-2) Send SSH_MSG_KEXDH_INIT
2013-07-19 14:34:10,185 INFO  [org.apache.sshd.client.kex.DHG1] (NioProcessor-2) Received SSH_MSG_KEXDH_REPLY
2013-07-19 14:34:10,193 INFO  [org.apache.sshd.client.session.ClientSessionImpl] (NioProcessor-2) Received SSH_MSG_NEWKEYS
2013-07-19 14:34:10,194 INFO  [org.apache.sshd.client.session.ClientSessionImpl] (NioProcessor-2) Send SSH_MSG_SERVICE_REQUEST for ssh-userauth
2013-07-19 14:34:10,276 INFO  [org.apache.sshd.client.auth.UserAuthPassword] (pool-4-thread-4) Send SSH_MSG_USERAUTH_REQUEST for password
2013-07-19 14:34:10,285 INFO  [org.apache.sshd.client.auth.UserAuthPassword] (NioProcessor-2) Received SSH_MSG_USERAUTH_SUCCESS
2013-07-19 14:34:10,328 INFO  [org.apache.sshd.client.channel.ChannelExec] (pool-4-thread-4) Send SSH_MSG_CHANNEL_OPEN on channel 0
2013-07-19 14:34:10,330 INFO  [org.apache.sshd.client.channel.ChannelExec] (NioProcessor-2) Send SSH_MSG_CHANNEL_REQUEST exec
2013-07-19 14:34:47,918 WARN  [org.apache.sshd.client.session.ClientSessionImpl] (NioProcessor-2) Exception caught: java.io.IOException: Connection reset by peer